مجلة آفاق للبحوث والدراسات
Volume 9, Numéro 2, Pages 463-482
2026-07-31

The Relationship Of Economic Growth To Government Expenditure In Algeria (1990-2022) - An Econometric Study According To Wagner's Law-

Authors : Boumediene Rania . Houalef Rahima .

Abstract

This study examines whether Wagner's Law holds in Algeria over 1990–2022 using six alternative formulations. Four specifications confirm a significant long-run relationship, with income elasticities exceeding unity. The Pryor model proves most robust, revealing cointegration between real government consumption and GDP, with approximately 26% of short-run disequilibrium corrected annually. Causality runs strictly from GDP to government expenditure, supporting Wagner's Law and rejecting the Keynesian view, with important implications for fiscal policy and expenditure management in Algeria.

Keywords

Wagner's Law ; Government Expenditure ; Economic Growth ; Cointegration ; Algeria